Penalties may be waived in delinquency or deficiency cases if the taxpayer has a reasonable cause that is listed in state statute. See Tenn. Code Ann Section 67-1-803(c) and (d). Waivers can also be issued in delinquency cases if the taxpayer has a good two-year filing record with the Department and no willful disregard of the law or gross negligence is involved. The Attorney General must approve a waiver of penalty of $100,000 or more.
To submit a penalty waiver, log into the Tennessee Taxpayer Access Point (TNTAP), access your account, and select Petition for Penalty Waiver.
Taxpayers who are unable to access the information electronically through TNTAP should submit the Petition for Waiver of Penalty via email to penalty.waivers@tn.gov to request to waive a penalty.